Lawmakers say up to 90,000 homeowners could get cheaper plans from these insurers.
NEW ORLEANS — Louisiana lawmakers approved $42 million in stimulus payments to boost the state’s struggling property insurance market.
The money will go to eight insurance companies to bring more competition to the Louisiana property insurance market.
That money lowers risk for insurance companies, who have agreed to write double that amount in new premiums and maintain that coverage for five years.
Companies admitted on Friday include:
- Allied Trust Insurance Co.
- Mutual Exchange of Cajun Underwriters (CURE)
- Constitutional Insurance Co.
- Increase mutual exchanges
- Gulf States Insurance Co.
- SafePoint Insurance Co.
- SafePort Insurance Co.
- SureChoice Underwriters Reciprocal Exchange (SURE)
“It’s going to stabilize (the market), and when we first did that after Katrina and Rite, it had that effect,” said Jim Donelon, Louisiana’s insurance commissioner. “Home insurance nationally increased at just 1% per year for each of those five years.”
Insurance prices have skyrocketed in Louisiana after Hurricanes Laura, Delta, Zeta and Ida. Since Hurricane Ian struck Florida in 2022, a dozen insurance companies have collapsed and several more have stopped writing policies.
As a result, more than 100,000 homes have had to turn to Citizen’s – Louisiana’s insurer of last resort.
Now up to 90,000 of those customers could get cheaper rates from those insurers.
“The good news is that we have offered $45 million in incentive grants to businesses to close more business, new business, and take the pressure off Louisiana Citizens, which has grown to 135,000 policyholders,” Donelon said.
That won’t lower insurance prices for everyone, but it will still be a welcome relief for thousands of Louisiana residents.
According to Donelon, some of these companies could be writing policies as early as next month.
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